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It’s a sprint to the end of the year, but it’s not going to be an all-around happy holiday for everyone. As part of its effort to reorganize and slash its agency brands from 160 to six, Dentsu International plans to eliminate 12.5% of its 46,560-person workforce, which boils down to cutting about 6,000 roles.
The news was revealed in a Tokyo Stock Exchange filing on Monday. Ad Age’s Lindsay Rittenhouse writes that a Dentsu spokesperson attributed the cuts and parent company Dentsu Group’s $855 million restructuring to the “negative impact brought on by the pandemic.”
Dentsu Group first announced it would restructure last month in order to jettison redundancies across its business during its third-quarter earnings, which revealed a 14.8% dip in organic revenue. Dentsu International, meanwhile, reported a 14.6% slip for organic sales in the same quarter.